What does SWOT analysis evaluate?

SWOT analysis is a strategic planning tool used to identify and evaluate the internal and external factors that can impact an organization. The framework specifically focuses on the organization's strengths and weaknesses, which are internal factors, as well as opportunities and threats, which are external factors.

By assessing strengths, the organization can leverage its advantages to gain a competitive edge. Evaluating weaknesses allows the organization to identify areas for improvement. Opportunities are analyzed to uncover potential areas for growth and market expansion, while threats are examined to understand challenges and risks that the organization may face in its environment.

This comprehensive evaluation helps organizations develop effective strategies to optimize their performance and navigate the market landscape effectively. The other choices, while relevant to different aspects of marketing and business, do not encapsulate the holistic approach that SWOT analysis provides to understanding an organization's strategic position.